Small And Medium Enterprises Case Study

Entrepreneurship of the Micro, Small and Medium Enterprises

Prof. Dr. Prabhakar Y. Harkal Prof. Gajanan D. Chaudhari Associate Professor and Research guide Research student Dnyanopasak College, Parbhani. S.R.T.M.University, Nanded. Mobile No. 09403065455 Mobile No. 09765759262 Email- [e-mail] Email- [e-mail]

Abstract:

Entrepreneurs play a key role in the economic development of a country. Economic development of a country

Problems of small & medium enterprises: While the small entrepreneurs can set up a unit even with less capital, enjoy quick returns and have the flexibility to handle the vagaries of the market, they have to face many problems like the following:

1. Paucity of Finance: The small entrepreneurs possess a weak financial structure and find it extremely difficult to obtain credit because of lack of collateral security. This acts as a big handicap, especially in the initial stages, in most of their operations like their ability to hire the best workers or to purchase the latest machinery and equipment or to acquire sophisticated technology.

2. Poor availability of power and other infrastructure: Though infrastructural bottlenecks are problems for big businesses too, yet they can overcome these problems to some extent because of their financial strength e.g. generating their own power, or even influencing the government in framing its policies sometimes. The small entrepreneur on the other hand has to battle with them.

3. Obsolete Technology: Most small businesses use old technologies because they cannot afford better. As a result the quality of their goods is inferior and the cost of production is higher than in case of other big ventures. This has acted as a serious handicap especially after opening up of the economy when they have had to compete with imported

SME’s is like blood veins in the human body. National development depends upon the growth of small and medium business enterprises. They provide the largest share of employment after agriculture. They are the nurseries for entrepreneurship and innovation. They are widely dispersed across the country and produce a diverse range of products to meet the needs of the local markets, the global market and the national and international value chains. SME’s sector has emerged as a highly vibrant and dynamic sector of the Indian economy. SME’s not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. SME’s are complementary to large industries as ancillary units and this sector contributes enormously to the socioeconomic development of the country.

XIV. References:

[1]Annual Reports 2013-14, Ministry of Micro Small and Medium Enterprise, Government of India.

[2]“Ministry of Micro, Small & Medium Enterprises, 2007: Micro, Small and Medium Enterprises in India: An Overview”, Ministry of Micro Small and Medium Enterprise, Government of India.

[3]MSME Development Act 2006, Ministry of MSME, Government of India.

[4]“Final Results: fourth All India Census of Micro Small and